You can carry good auto insurance and still be involved in an accident with someone who does not.
That is where Uninsured Motorist (UM) and Underinsured Motorist (UIM) coverage can become extremely important.
These coverages are designed to help protect you and other covered people when the person who causes the accident either has no liability insurance or does not have enough insurance to cover the injuries they caused. Utah law treats UM and UIM as separate coverages.
Imagine Someone Runs a Red Light
You are driving through an intersection when another driver runs a red light and hits your vehicle.
You are seriously injured.
Medical treatment, lost income, and other damages eventually total $100,000.
Then you learn that the driver who hit you only carries $30,000 of bodily injury liability coverage.
Utah currently requires drivers to carry at least $30,000 per person and $65,000 per accident in bodily injury liability coverage.
The other driver may have been legally insured.
But $30,000 does not come close to covering your $100,000 loss.
That is where Underinsured Motorist coverage may help.
What Is Uninsured Motorist Coverage?
Uninsured Motorist Bodily Injury coverage, often shown as UM, can help when you are injured by an at-fault driver who has no liability insurance.
Utah's Insurance Department also describes UM as coverage that can apply to bodily injury caused by a hit-and-run driver.
Imagine the other driver causes a serious accident and then you discover:
They have no insurance at all.
Without UM coverage, there may be no insurance policy on the other side available to compensate you for your injuries.
Your own UM coverage may provide another source of protection, subject to your policy limits and terms.
What Is Underinsured Motorist Coverage?
Underinsured Motorist coverage, or UIM, addresses a different problem.
The at-fault driver does have insurance—but not enough.
Utah law defines an underinsured vehicle as one that has liability insurance at the time of the accident but insufficient liability coverage to fully compensate an injured person for their damages.
Using our example:
Your damages: $100,000
At-fault driver's bodily injury limit: $30,000
There is potentially a substantial gap.
Depending on your coverage and the circumstances of the claim, your UIM coverage may help address eligible damages beyond what is available from the at-fault driver's liability insurance.
Why Higher Liability Limits on the Other Driver Cannot Be Assumed
This is one of the most important reasons to understand UM and UIM coverage.
You control your own insurance policy.
You do not control what the person driving toward you purchased.
They might carry high liability limits.
They might carry only Utah's minimum limits.
They might have no insurance.
You usually do not find out until after the accident.
UM and UIM coverage give you a way to think about protecting yourself from someone else's insurance decision.
Utah Gives You a Choice
Under Utah law, uninsured and underinsured motorist coverage are separate coverages. New policies generally provide limits tied to the policy's liability limits unless the named insured rejects the coverage or selects lower limits through the required written acknowledgment process.
That means you may see options to reject or reduce these coverages when purchasing auto insurance.
Saving money by lowering coverage can be tempting.
But before doing that, ask yourself:
If someone seriously injured me and only had minimum insurance—or no insurance—how much protection would I want on my own policy?
What About Damage to Your Car?
UM and UIM bodily injury coverage primarily deal with injuries, not simply damage to your vehicle.
Utah also recognizes Uninsured Motorist Property Damage (UMPD) coverage.
UMPD may be available for damage caused by an identified uninsured driver when the insured vehicle does not carry collision coverage. Utah law places specific conditions, limits, and a deductible on this coverage.
If you carry collision coverage, damage to your own vehicle may instead be handled through that portion of your policy depending on the circumstances.
This is another reason it is important to look at your entire auto policy, rather than assuming one coverage takes care of everything.
Do Not Just Look at the Price
When comparing auto insurance quotes, it is easy to look only at the monthly payment.
But two policies with similar prices can provide very different protection.
Ask your agent:
What are my UM limits?
What are my UIM limits?
Do they match my bodily injury liability limits?
Have I rejected or reduced either coverage?
What happens if I am hit by an uninsured driver?
What happens if I am seriously injured by someone carrying minimum limits?
Those questions may matter much more after an accident than saving a few dollars on the premium.
Protect Yourself From the Driver You Cannot Control
You can drive carefully.
You can maintain your vehicle.
You can purchase strong liability limits.
But you cannot choose how much insurance every other driver on the road carries.
At Tommy Thomsen Insurance, we can review your auto policy and show you exactly what Uninsured and Underinsured Motorist coverage you currently have.
Let’s Review Your Auto Insurance
If you are not sure how your policy would protect you after an accident with an uninsured or underinsured driver, let us take a look.
Request an auto insurance quote or policy review through our website, or call Tommy Thomsen Insurance at 801-982-7200.
We will explain your coverage in plain language so you understand the protection you have before you need to use it.
This article provides general insurance information and is not legal advice or a guarantee of coverage. UM and UIM coverage, limits, exclusions, eligibility, offsets, claim payments, and requirements vary by policy, insurer, and circumstances of the accident.